SAP: Oddo BHF is 'skeptical' - remains neutral
(CercleFinance.com) - An Oddo BHF analyst today confirms his "neutral" recommendation on the share of SAP group, saying that it would require a "perfect execution" of the operational efficiency plan that it presented to find upside.
Oddo still doubts SAP's structural operating leverage, as the improvement in the gross margin of the Cloud would generate a gross impact of +5 points, although a net impact after the negative mix effect, of just +100 bp, which is close to the broker's calculations (+80 bp) and therefore fairly limited, the analyst says.
More "skeptical" than SAP, Oddo BHF confirms its target price of 110 euros for the share, which represent downside potential of 11%.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
Oddo still doubts SAP's structural operating leverage, as the improvement in the gross margin of the Cloud would generate a gross impact of +5 points, although a net impact after the negative mix effect, of just +100 bp, which is close to the broker's calculations (+80 bp) and therefore fairly limited, the analyst says.
More "skeptical" than SAP, Oddo BHF confirms its target price of 110 euros for the share, which represent downside potential of 11%.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.